Vicinity Energy Announces Partnership

Boston – Vicinity Energy recently announced its partnership with Augsburg, Germany-based MAN Energy Solutions to collaborate in the development of lowtemperature source heat pump systems for steam generation. Vicinity plans to install an industrial-scale heat pump complex at its Kendall Station facility by 2026.

Portland, CT – The Town of Portland announced the installation of a solar photovoltaic (PV) system at Brownstone Intermediate School, located at 14 Main Street.

The 67 kW system is projected to save the town more than $10,000 annually in energy costs and more than $206,000 over the term of the power purchase agreement (PPA). This project was installed by Greenskies Clean Focus and was part of the Connecticut Green Bank’s Solar Municipal Assistance Program (MAP). Portland is one of the first towns to complete the program which is now in its fourth year assisting towns with solar support.

Through Solar MAP, the Green Bank provides technical support to municipalities to develop solar PV projects on municipal buildings, such as town halls, emergency services buildings, and schools. The Green Bank also provides financing for the solar systems through a PPA, which allows the municipality to access solar with no upfront installation costs, no new debt to incur, and no operations and maintenance costs.

“As one of our first group of Solar MAP towns, Portland has been an excellent partner as the Green Bank team supported the project from inception through completion. We are excited to see this solar installation at Brownstone energized and begin saving the school money,” said Mackey Dykes, vice president of financing programs at the Connecticut Green Bank.

Inclusive Prosperity Capital (IPC), a nonprofit investment fund dedicated to financing clean energy projects that benefit traditionally underserved markets and projects, is partnering with the Green Bank to own and maintain the system.

“Vicinity’s first heat pump complex in Cambridge, Mass., which draws from proven examples in Europe, will be the largest in the U.S. It will be powered by renewable electricity to safely and efficiently harvest energy from the Charles River, returning it at a lower temperature,” said Bill DiCroce, president and CEO of Vicinity Energy. “We have made a lot of progress harvesting the energy of the sun and wind; MAN’s cutting-edge technology will now enable Vicinity to renewably harvest energy at scale from rivers and oceans, which are presently warming from the effects of climate change. This is a big deal in district energy’s efforts to decarbonize cities, and Vicinity is very proud to lead the way with MAN in this exciting venture.”

“The heating sector accounts for 3040% of global CO2 emissions. The global energy transition cannot succeed without decarbonizing heat,” said Uwe Lauber, CEO and CSO of MAN Energy Solutions. “At the same time, district heating systems are one of the most efficient and sustainable ways to provide heat to commercial buildings and industrial facilities. Hence the task is to reduce district heating systems’ dependence on fossil fuel-fired heat sources. Our heat pump technology can do that, with many examples in the European field to prove it. I am very happy to collaborate with Vicinity Energy on the application of our technology to support Vicinity’s impressive district energy system.”

This announcement represents another significant step in Vicinity’s plans to electrify its operations to achieve net zero. In 2022, the company kicked off its electrification strategy by deconstructing a steam turbine at its Kendall Facility in Cambridge. In its place, Vicinity is installing an industrial-scale electric boiler that will begin supplying carbonfree eSteam to customers in 2024.

The company’s other 11 locations in major cities nationwide will undergo similar electrification processes in the coming years to achieve its goal of net zero by 2050.